If this is something new and you received a much larger refund in previous years, it is likely because your tax situation changed or you made an error in your entries. If nothing changed, then you can go back and compare your return from last year to this year. Click here for instructions on how to see your 1040 online. If you use the desktop version, you can just click on Forms mode at the top of the page.
Were you self-employed and have a liability for Self-Employment Taxes. These taxes are 15.3% of your profit. So if you made a profit of $10,000, you would owe $1,530 for self-employment taxes. If this is your situation, you should be making quarterly estimated payments to cover your SE taxes and avoid penalties.
You had multiple jobs and each employer withheld enough to cover the wages you made with them, but when you combine your wages from multiple employers you are in a higher tax bracket and neither employer withheld at the higher rate. If you have multiple employers, you may want to complete a new W4 form for the one you make the most for or even for 2 of them. You will want to complete section 2 and probably section four to have an additional amount withheld every pay period. You can calculate the amount extra to be withheld, if your job situation is not expected to change, by dividing your $1,700 due by the number of pay periods you have in a year (usually 26 or 52) and entering that on line 4c.
You claimed an exemption on your W-4, or you did not update it. For example, you had a child that was 15 when you started the job, but now they are 17 and no longer eligible for the child tax credit or your filing status has changed.
Did your child turn 17 and lower your Child Tax Credit from $2,000 to the $500 Non-Refundable Other Dependent Credit ?
Be sure to go through all the questions in TurboTax to make sure you did not miss any credits or deductions.
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